3PL
A 3PL distribution revolution for fulfillment services.
Nippon Express provides high-grade 3PL services in our role as an integrated logistics company that has built up an abundance of assets and know-how. We cater flexibly to all customer needs, establishing the optimal logistics environment.
What is 3PL (Third-Party Logistics)?
Nippon Express Third (3rd) Party Logistics (3PL) proposes and implements logistical reform under the prerequisite of outsourcing logistical tasks, and it could be said to be a form of business that subcontracts out work that has been constantly subject to repeated improvement. Basically, 3PL is thought to be a style of business in which logistics are planned, designed and operated by experienced third parties (including those who are the same as transportation companies) who take over the responsibilities of the freight owners in order to solve problems caused by conflicts of interest between freight owners and the transportation companies.
Diagram of 3PL Business
3PL business involves procurement logistics, factory logistics, sales logistics (warehouse management, transportation and delivery management) and reverse logistics (industrial waste, returned commodities, repairs) being completely outsourced instead of being carried out by customers' logistics sections.
NIPPON EXPRESS-Type 3PL Business
Our NIPPON EXPRESS-Type 3PL Business covers both asset-type 3PL and non-asset-type 3PL.
This provides one-stop support for customer requirements.
Asset-Type
Companies with property and facilities that have accumulated know-how through the ownership of warehouses and delivery networks to a stage where they are able to suggest optimal logistics to customers. However, warehouse-related 3PL suppliers need to secure transportation and delivery functions. And, delivery-related 3PL suppliers need to establish tie-ups with warehouse suppliers.
Non-Asset-Type
Companies that do not own property or facilities. They optimize and suggest centers that can perform all tasks related to transportation and delivery networks, logistics processing and inventory control, as well as the information systems used for managing these tasks, to customers. Their business affairs are founded on the provision of know-how.
15 Functions Supporting 3PL Business
15 functions are organically integrated to propose optimal logistics environments to customers by offering superior planning skills, design skills and assigning skills.
Advantages of 3PL
3PL reforms company logistics environments to create new cash-flow and contribute to the improvement of the company's administrative environment itself. It can also be used to promote rationalization without fettering the company internally or externally.
Focuses Administrative Assets on the Main Business
It is possible to focus the company's assets that have hereto been assigned to distribution-related facilities/equipment and the staff and labor costs (salaries, training expenses, etc.) involved in distribution on the main field of business.
Realizes Efficient Cost Reductions
Establishing cost-reduction targets and deciding on incentives when the targets have been achieved enhances the motivation to reduce costs without causing any conflicts of interest.
Separates Sales Channels and Distribution
When promoting 3PL business, first of all, it is necessary to promote the separation of sales channels and distribution. This will solve the problems that customers have been facing up until now.
Dramatic Increase in Cash Flow
3PL contributes to increasing cash flow and stabilizing company management, and this clarifies things from a balance-sheet point of view.
